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Author: meili99 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308232  
Subject: Re: %$^&#$ Murphy! Date: 1/6/2006 11:06 PM
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Why do we (I include myself here too) compare the cost of repairs to the value of the car?

I don't think that is a rhetorical question. Shouldn't the comparison be the costs of continuing to own & operate the current car vs. the expected costs of owning & operating whatever car is bought as a replacement? And don't forget the time value of money used to acquire a more expensive car.

On that basis it's almost always worth repairing the old car, often even if it means a new engine, transmission or similar major expense.

Reality is the reason we shouldn't pay for those major repairs is if we really want that new(er) car so bad that we'll end up buying it anyway after making the major repair, in which case we lose the chance to come out ahead from paying for the major repair.

would people be willing to talk more about this? my car is approaching old age and i am often dipping into my e-fund to make repairs. currently i have no car payments. at what point to i bite the bullet and buy a new car? i suspect that many of you will say i should wait until i can pay cash but is that really the best option? it seems to me that high repair costs may be more than interest on a car loan (with no repairs!). what do you think?
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